Forge Innovation Development Corp. Files 2023 Annual Report

TL;DR

<b>Forge Innovation Development Corp. filed its 2023 10-K, detailing property management income and a significant asset purchase agreement.</b>

AI Summary

FORGE INNOVATION DEVELOPMENT CORP. (FGNV) filed a Annual Report (10-K) with the SEC on April 16, 2024. Forge Innovation Development Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company's primary business is land subdivision and development, with SIC code 6552. Key financial periods covered include fiscal years 2023, 2022, and 2021. The filing details property management income, including income from related parties. Significant events include an Asset Purchase Agreement with Legend LLC on March 24, 2023.

Why It Matters

For investors and stakeholders tracking FORGE INNOVATION DEVELOPMENT CORP., this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and operational activities for the fiscal year 2023, crucial for investors assessing its current standing. Details on property management income, including related party transactions, offer insight into the company's revenue streams and potential conflicts of interest.

Risk Assessment

Risk Level: medium — FORGE INNOVATION DEVELOPMENT CORP. shows moderate risk based on this filing. The company operates in the land subdividers and developers industry, which can be subject to cyclical market conditions and regulatory changes, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's financial health and future prospects.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Reporting Period End Date (Conformed period of report)
• 2024-04-16 — Filing Date (As of date)
• 6552 — SIC Code (Standard Industrial Classification for Land Subdividers & Developers)
• 2023-03-24 — Asset Purchase Agreement Date (Agreement with Legend LLC)

Key Players & Entities

• FORGE INNOVATION DEVELOPMENT CORP. (company) — Filer name
• FGNV (company) — Ticker symbol
• Legend LLC (company) — Party to Asset Purchase Agreement
• 2023-12-31 (date) — Fiscal year end
• 2024-04-16 (date) — Filing date
• 6552 (industry) — Standard Industrial Classification
• NV (state) — State of incorporation
• 2023-03-24 (date) — Date of Asset Purchase Agreement

FAQ

Risk Factors

• Market Conditions [medium — market]: The company's performance is subject to the cyclical nature of the real estate market, which can impact demand for land development and property management services.
• Land Development Regulations [medium — regulatory]: Operations are subject to various local, state, and federal regulations governing land use, zoning, and environmental standards, which can affect project timelines and costs.
• Financing Risks [medium — financial]: Access to capital and financing for development projects is critical and can be affected by economic conditions and lender requirements.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.

Key Financial Figures

• $0.75 — 9,903,126 based on the closing price of $0.75 per share, as reported on the over-the-
• $0.0001 — were 50,389,011 shares of Common Stock, $0.0001 par value, outstanding. Documents Inc
• $0.70 — common stocks of the Company, valued at $0.70 per share for a total purchase price of
• $1,377,000 — per share for a total purchase price of $1,377,000, which equals 51% of Legend LP's approx
• $2,700,000 b — of Legend LP's approximate net value of $2,700,000 based on (1) the Property's valuation app
• $3,000 — nc. in exchange for the compensation of $3,000 per month. During the year ended Decemb
• $5,000 — 2021, the service charges increased to $5,000 per month. In April 2022, we terminated
• $15,000 — recognized management service income of $15,000 under this agreement. On April 2, 202
• $10,000 — charge was $5,000 which was amended to $10,000 per month in June 2022 due to Legend LP
• $107,000 — income from Legend LP in the amount of $107,000 and $45,000, respectively. The decrease
• $45,000 — Legend LP in the amount of $107,000 and $45,000, respectively. The decrease was mainly
• $393,474 — l rent income generated by Legend LP of $393,474 for the year ended December 31, 2023, a
• $4,962 — on January 14, 2022, at monthly rent of $4,962, subject to increase. On or about Septe

Filing Documents

• form10-k.htm (10-K) — 803KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 17KB
• ex32-1.htm (EX-32.1) — 9KB
• form10-k_001.jpg (GRAPHIC) — 46KB
• 0001493152-24-014817.txt (&nbsp;) — 4654KB
• fgnv-20231231.xsd (EX-101.SCH) — 39KB
• fgnv-20231231_cal.xml (EX-101.CAL) — 56KB
• fgnv-20231231_def.xml (EX-101.DEF) — 193KB
• fgnv-20231231_lab.xml (EX-101.LAB) — 318KB
• fgnv-20231231_pre.xml (EX-101.PRE) — 264KB
• form10-k_htm.xml (XML) — 517KB

Risk Factors

Risk Factors 5 Item 1B. Unresolved Staff Comments 5 Item 2.

Properties

Properties 5 Item 3.

Legal Proceedings

Legal Proceedings 5 Item 4. Mine Safety Disclosures 5 PART II 6 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 6 Item 6.

Selected Financial Data

Selected Financial Data 8 Item 7.

Management's Discussion and Analysis Of Financial Condition and Results of Operation

Management's Discussion and Analysis Of Financial Condition and Results of Operation 8 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 9 Item 8. Consolidated Financial Statements and Supplementary Data 9 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 10 Item 9A.

Controls and Procedures

Controls and Procedures 10 Item 9B. Other Information 10 PART III 11 Item 10. Directors, Executive Officers and Corporate Governance 11 Item 11.

Executive Compensation

Executive Compensation 12 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 13 Item 13. Certain Relationships and Related Transactions 13 Item 14. Principal Accountant Fees and Services 14 PART IV 15 Item 15. Exhibits; Financial Statement Schedules 15

SIGNATURES

SIGNATURES 16 i CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS The information contained in this Report includes some statements that are not purely historical and that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, perceived opportunities in the market and statements regarding our mission and vision. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. You can generally identify forward-looking statements as statements containing the words "anticipates," "believes," "continue," "could," "estimates," "expects," "intends," "may," "might," "plans," "possible," "potential," "predicts," "projects," "seeks," "should," "will," "would" and similar expressions, or the negatives of such terms, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking forward-looking statements. The forward-looking statements contained herein are based on various assumptions, many of which are based, in turn, upon further assumptions. Our expectations, beliefs and forward-looking statements are expressed in good faith on the basis of management's views and assumptions as of the time the statements are made, but there can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors and matters discussed elsewhere herein, the following ar

Business

Business Strategy The Company's business strategy includes the following three main segments of the real estate business: 1. We intend to acquire and develop land for residential and commercial development. 2. We also, to a lesser extent, intend to develop a diversified real estate portfolio by investing in residential real estate, including single-family housing, condos and town-homes and commercial properties, including strip-malls and small office buildings. 3. We intend to provide property management for our own properties and for properties owned by non-affiliated third parties. Property Development The Company primary business is to acquire land and develop and sell fully constructed homes and commercial property such as stores, offices, private schools, etc., to non-affiliated third parties. Our first property acquisition was 29 acres of vacant land in the city of Desert Hot Springs in Southern California. Our original plan was to build various commercial buildings on the parcels, including stores and restaurants. However, due to problems with permits and adjacent landowners that would lead to lengthy negotiations and possibly additional costs, the Company sold the property in March 2017, to a non-affiliated third party for a profit. Our principal activities are securing acquisition rights to properties, obtaining zoning and other entitlements for the properties, securing financing for the purchase of the properties, improving the properties' infrastructure and amenities, and selling properties to third parties. Currently all of our property development activities are centered in the Southern California area. Investing in Development Projects The Company intends to invest a small portion of its funds and to utilize funds pooled from investors to directly invest in income-yielding properties. The Company will concentrate on investing in properties with long-term leases. We rely on our management's expertise in identifying residential and

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View this 10-K filing on SEC EDGAR